What is the Feed-In Tariff Program?
Feed In Tariff (F.I.T.) programs have proven themselves enormously successful throughout Europe as the idea way for governments to inspire manufactures, corporate and small business, and private individuals alike, to invest millions of dollars into developing renewable energy industries. Thereby reducing their nations carbon footprint substantially.
Some U.S. States have already implemented Feed In Tariff programs and many more are seriously investigating the concept. But further to the North, the Province of Ontario, in Canada, is leading the way throughout North America, with it,s very aggressive Feed- In Tariff Program. As Ontario is home to R-E CANADA, the balance of this page will focus on the Ontario F.I.T. Program.
In Ontario right now, everyone from governments to Bay Street financiers, and farmers to small business owners are gearing up for a huge push forward to produce clean and green energy, it may just be the biggest economic opportunity of the century. Even home owners are starting to produce solar and wind energy as a way to reduce their carbon footprint while at the same time becoming a potential personal revenue generator.
The Green Energy Act, initiated in 2009, is Ontario’s committment to three main objectives: fostering the growth of renewable energy projects, which use cleaner sources of energy; removing barriers to and promoting opportunities for renewable energy projects; and promoting a green economy.
Now Ontario homeowners are being offered some lucrative options and benefits for generating green energy and selling to the Ontario Power Authority through what is called a feed in tariff program. These twenty year (micro) renewable electricity generation project contracts( 10 kilowatts or less in size) are paying a guaranteed price for all the electricity the project produces.
“The new micro FIT program literally brings power to the people,” said Gerry Phillips Minister of Energy and Infrastructure. ” It allows homeowners, farmers , schools, and small businesses to help power our future and get paid for it, while investing in a new era of green collar jobs and expertise.
How to participate in the process
Interested in developing your own small wind renewable energy project ? The microFIT program offers a relatively streamlined process. The website takes applications online and there is minimal paperwork (3 Step Process). There is no application fee to submit information.
“The tremendous initial response to the feed – in tariff signals a strong future for renewable energy in Ontario,” said Ontario Power Authority C.E.O. Colin Anderson. ” We’ve cut red tape and made it simple for ordinary Ontarian’s to become electricity producers and they,ve raced to embrace green energy.”
Once a project is connected to the grid, the Ontario Power Authority (OPA) will send a microFIT contract offer. After receiving the offer, one must log into his or her personal “My microFIT home page” to accept the microFIT contract. MicroFIT is an ongoing program with applications being accepted on a continual basis. Once current applications have been processed, the OPA anticipates a 30 day turn around for microFIT applications.
Projects eligible for the microFIT program will receive: a long term contract for the payment of electricity produced from the renewable energy project, and a fixed price for the full term of the contract.
Once you have entered into a micrFIT contract, you will be guaranteed a fixed price for the electricity you produce . The prices are designed to cover typical capital and operating costs and to provide a reasonable return on the investment over the term of the contract.
Prices paid for renewable energy generation under microFIT vary by energy source and take into account the capital investment required to get a project up and running. The rate per KW (as shown on the OPA microFIT web site) currently being paid for electricity generated by wind is cents / K.W.H.
R-E CANADA- MicroFIT summary
The question most commonly asked by all persons, upon first look at a Feed-In Tariff Program is why? Why would the OPA and the Ontario Government support a program where they have to purchase generated electricity at a price far times greater than the price OPA sells it at?
The answer lies in the future costs of meeting the next 20% demand, growth rate of generated electricity capacity . It has been concluded by every leading think tank, and renown economists, worldwide, most recently in a report issued by the Deutsche Bank in Germany, reporting on the status of their, one of the world’s most established feed-in tariff programs (14 years). That the cost of a feed-in tariff now, and the resulting investment in the research and development of a renewable energy industry that could handle the next 20% demand, growth rate is far less, when all things considered, than the costs and impact, of handling that next 20% of demand by expanding the existing infrastructure. Thus resulting in less cost to the consumer, in the long run, in exchange for upfront investment now, while creating jobs and opportunity.
To find out how you can benefit financially from your investment in renewable energy generating, while creating a greener environment, contact your R-E CANADA representative immediately, via the contact page on this site.